London-based gym chain, Gymbox, has secured a £39 million funding package from existing investors to open up new sites in London. BGF (Business Growth Fund), an existing Gymbox shareholder, has provided an additional £13 million of equity finance while HSBC, which has banked the company for over 13 years, is continuing to support the business with a debt package totalling £26 million.

Gymbox’s expansion plans includes its largest gym to date, which is currently under construction in Farringdon. The new 42,000 square-feet gym will feature a three lane running track, an Olympic-sized boxing ring and the largest free weights area in the capital. More than 150 classes will be available every week, including fitness concepts never before seen in the UK such as Circus Fit, a combination of trapeze skills, aerial hoop and acrobatics.

CEO and founder, Richard Hilton built his business on the vision that working out should be fun. “Gymbox continues to revolutionise the fitness industry by ensuring that working out is as much fun as going out,” he said. Hilton believes there’s a lot more the company can achieve, fuelled by this injection.

Following BGF’s initial investment in July 2014, the business has opened sites in Old Street, Westfield Stratford and Victoria and has almost doubled its EBITDA during this period. The deal was led for BGF by Alistair Brew and Ben Kirby, who both led the original investment in Gymbox in July 2014. Gymbox was advised by Ali Aneizi of Tamweel Capital, an investor in the business and corporate finance advisor to the company.

Gymbox opened its first gym in 2003, and in the last 12 months has generated revenues and EBITDA of £16 million and £5.5 million. The eight London based gyms have in excess of 22,000 members and according to Cool Brands is ‘the must-go destination for fitness-savvy Londoners’.